Automatic Offset in Oracle Payables
When an AP invoice is entered, there may be multiple expense/ distribution accounts and the corresponding liability account generally booked is the default account picked from the Supplier site or the one defaulted at Invoice header level. However, there may be scenarios where a business entity is using the same Operating Unit to make purchases against multiple balancing segments. In such cases, it would be imperative to have different liability accounts booked against each of the different distribution accounts. For example, consider an AP Invoice with a default liability account and two different distribution accounts. Liability is an offset account. We can offset liabilities in three ways i.e None Balance Account If you enable Automatic Offsets, Payables automatically balances invoice and payment distributions that cross balancing segments by creating offsetting entries for each balancing segment. Automatic Offsets is a powerful feature that greatly affects processing th...